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Wachovia snags Fla. bank
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August 7, 1997: 1:21 p.m. ET
1st United Bancorp being bought for $222 million, or $20.875 a share
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NEW YORK (CNNfn) - As a further indication of its aggressive expansion strategy, Wachovia Corp. said Thursday it agreed to acquire 1st United Bancorp of Boca Raton, Fla., for $222 million.
The latest agreement follows more than $2.8 billion of transactions in June, when the Winston-Salem, N.C.-based bank purchased Central Fidelity Banks Inc. and Jefferson Bankshares Inc., both of Virginia.
The maneuver catapulted Wachovia to become one of the largest banks in Virginia; however, Wall Street analysts had predicted the bank faced more difficulties finding expansion opportunities in the fast-growing Florida market.
"Florida is a state Wachovia has admired for some time, and 1st United is well located in several extremely attractive markets along Florida's Atlantic coast," Wachovia Chief Executive L. M. Baker Jr. said in a statement.
1st United Bancorp, with $820 million in assets, operates 33 bank centers in Palm Beach, Martin, Broward and Brevard counties. It is the largest commercial bank headquartered in Palm Beach County.
Under the agreement, Wachovia will pay $20.875 a share for 1st United stock. The exchange ratio will range from a minimum of 0.3 share to a maximum of 0.366 share of Wachovia common. The transaction is structured to be tax-free on a purchase accounting basis.
The deal is expected to be non-dilutive to Wachovia's earnings in 1998 and have a positive impact on earnings in 1999. The agreement has been approved by both boards. It is subject to the approval of 1st United's shareholders and appropriate regulatory agencies. The merger is expected to close by year-end.
In connection with the deal, Wachovia also said it intends to repurchase up to about 3.5 million outstanding shares.
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Wachovia
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